DoD's $13.3M Barracks Renewal Contract Awarded to Macro-Z-Technology Company for Air Support Operations Facility

Contract Overview

Contract Amount: $13,279,526 ($13.3M)

Contractor: Macro-Z-Technology Company

Awarding Agency: Department of Defense

Start Date: 2007-04-17

End Date: 2008-10-10

Contract Duration: 542 days

Daily Burn Rate: $24.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY07 WHOLE BARRACKS RENEWAL COMPLEX, STRYKER AVENUE, AIR SUPPORT OPERATIONS SQUADRON (ASOS) FACILITY

Place of Performance

Location: FORT LEWIS, PIERCE County, WASHINGTON, 98433

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $13.3 million to MACRO-Z-TECHNOLOGY COMPANY for work described as: FY07 WHOLE BARRACKS RENEWAL COMPLEX, STRYKER AVENUE, AIR SUPPORT OPERATIONS SQUADRON (ASOS) FACILITY Key points: 1. Contract awarded for barracks renewal and facility construction, indicating investment in military infrastructure. 2. The contract was competed under 'Full and Open Competition After Exclusion of Sources', suggesting a potentially limited but justified competitive process. 3. The duration of 542 days points to a substantial construction project requiring significant oversight. 4. Fixed-price contract type suggests cost certainty for the government, shifting risk to the contractor. 5. The project is located in Washington, potentially impacting local construction workforce and businesses. 6. The specific nature of the facility (Air Support Operations Squadron) highlights specialized military operational needs.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without detailed cost breakdowns or comparisons to similar barracks renewal projects. The raw dollar amount of $13.3 million for a 542-day construction project needs to be assessed against the scope of work, including the specific requirements of an Air Support Operations Squadron facility. The firm fixed-price nature provides some cost control, but the absence of detailed cost data prevents a definitive value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This indicates that while the competition was intended to be open, specific sources were excluded, possibly due to specialized capabilities or prior relationships. With only two bidders, the level of competition was limited, which could potentially impact price discovery and lead to less competitive pricing compared to a broader, unrestricted full and open competition.

Taxpayer Impact: A limited competition may result in higher costs for taxpayers if the excluded sources would have offered more competitive bids. The government must ensure the exclusion criteria were justified and that the resulting price reflects fair market value.

Public Impact

Personnel at the Air Support Operations Squadron (ASOS) will benefit from improved living and working conditions. The contract delivers essential infrastructure upgrades for military readiness and operational effectiveness. The project's geographic impact is centered in Washington, potentially creating local construction jobs. The construction activities will likely involve a skilled labor force, contributing to the local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have restricted price negotiation.
Exclusion of sources requires clear justification to ensure fairness and optimal value.
Fixed-price contracts can lead to cost overruns if scope is not well-defined or if unforeseen issues arise.

Positive Signals

Firm fixed-price contract provides cost certainty.
Awarding to a single contractor streamlines project management.
Investment in military infrastructure supports operational readiness.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for military facilities. The construction market for government projects is often characterized by stringent requirements, competitive bidding processes, and specialized contractors. The size of this contract, approximately $13.3 million, is moderate for a significant construction project. Comparable spending benchmarks would typically involve analyzing other barracks renovations or similar facility constructions within the Department of Defense or other federal agencies.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration (ss: false, sb: false). This suggests that the primary focus was on securing the best technical and price proposal from qualified contractors, regardless of size. There is no explicit mention of subcontracting goals for small businesses within the provided data. The impact on the small business ecosystem would depend on whether Macro-Z-Technology Company utilizes small businesses for any subcontracted work, which is not detailed here.

Oversight & Accountability

Oversight for this construction contract would typically be managed by the contracting officer and the contract administration office within the Department of the Army. The firm fixed-price nature of the contract implies that the contractor bears most of the financial risk, but oversight would still focus on ensuring adherence to specifications, quality standards, and timely completion. Transparency is generally maintained through contract award databases, but detailed project progress and specific oversight activities are not publicly disclosed.

Related Government Programs

Military Barracks Construction
Department of Defense Facility Modernization
Air Force Base Infrastructure Projects
General Building Construction Services

Risk Flags

Limited competition may impact price competitiveness.
Potential for scope creep in fixed-price construction contracts.
Need for clear justification for exclusion of sources.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.3 million to MACRO-Z-TECHNOLOGY COMPANY. FY07 WHOLE BARRACKS RENEWAL COMPLEX, STRYKER AVENUE, AIR SUPPORT OPERATIONS SQUADRON (ASOS) FACILITY

Who is the contractor on this award?

The obligated recipient is MACRO-Z-TECHNOLOGY COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $13.3 million.

What is the period of performance?

Start: 2007-04-17. End: 2008-10-10.

What is the track record of Macro-Z-Technology Company with federal contracts, particularly within the Department of Defense?

Macro-Z-Technology Company has a history of federal contracting, primarily with the Department of Defense. Analyzing their past performance requires accessing federal procurement databases like SAM.gov or FPDS. Such a review would typically look at the number of contracts awarded, their value, the types of services rendered, and any reported performance issues or awards. For this specific contract, understanding their experience with similar construction projects, especially those involving military facilities or complex building types, would be crucial for assessing their capability to execute the barracks renewal effectively and on time.

How does the $13.3 million cost compare to similar barracks renewal projects within the Department of the Army?

A direct comparison of the $13.3 million cost for this barracks renewal project to similar Department of the Army projects requires access to a database of comparable contracts, including their scope, size, location, and completion dates. Without such a benchmark, it's difficult to definitively state if this price is high or low. Factors influencing cost include the specific renovation scope (e.g., structural, electrical, plumbing, finishes), the age and condition of the existing facilities, labor costs in the Washington area, and the specific requirements for an Air Support Operations Squadron facility. A thorough value analysis would involve identifying similar projects and comparing cost-per-square-foot or cost-per-unit metrics.

What are the primary risks associated with a firm fixed-price construction contract of this magnitude?

The primary risks associated with a firm fixed-price (FFP) construction contract of this magnitude ($13.3 million) for the contractor include scope creep, unforeseen site conditions, material price fluctuations, and labor availability. If the scope of work is not precisely defined or if unexpected issues arise during construction (e.g., hazardous materials, structural problems), the contractor may incur significant cost overruns as they are obligated to complete the work for the agreed-upon price. For the government, the risk is primarily that the contractor may cut corners on quality to maintain profitability if unforeseen issues arise, or that the initial price may have been inflated due to the contractor pricing in potential risks. Robust oversight and clear contract specifications are crucial to mitigate these risks.

What is the expected impact of this contract on the operational effectiveness of the Air Support Operations Squadron (ASOS)?

This contract is expected to significantly enhance the operational effectiveness of the Air Support Operations Squadron (ASOS) by providing modernized and potentially expanded living and working facilities. Improved barracks contribute to better morale, retention, and overall well-being of service members, which are critical for sustained operational readiness. Upgraded facilities may also incorporate modern technological or logistical requirements specific to ASOS operations, ensuring that the physical infrastructure supports the unit's mission efficiently. The renewal aims to create a more functional and secure environment, directly contributing to the unit's ability to perform its duties effectively.

How has federal spending on military construction and facility maintenance evolved in recent years, and where does this contract fit?

Federal spending on military construction and facility maintenance has historically been substantial, driven by the need to maintain readiness, modernize aging infrastructure, and adapt to evolving strategic requirements. In recent years, there has been a consistent focus on upgrading aging facilities, addressing deferred maintenance, and investing in infrastructure that supports new technologies and operational concepts. This $13.3 million barracks renewal contract fits within this broader trend of investing in the sustainment and modernization of military housing and support facilities. It represents a specific allocation towards improving living conditions for personnel, which is a key component of overall military readiness and personnel support.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912DW07R0002

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 841 E WASHINGTON AVE, SANTA ANA, CA, 46

Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $13,279,526

Exercised Options: $13,279,526

Current Obligation: $13,279,526

Contract Characteristics

Cost or Pricing Data: NO

Timeline